BofA: bearish on EUR/USD

According to analysts at Bank of America Merrill Lynch, the US dollar is now forming a base, returning to a larger bullish trend.

In their view, a daily close of EUR/USD below $1.3166 would confirm the top and a turn lower with targets at $1.2457 and below. A break above the trend line resistance at $1.3322 would return the pair into the consolidation phase. The bearish view would be invalidated only on a close above $1.3418.